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7a - Econ. Dev. ARPA Program Start to Cart ProgramElevating community commerce: �] V •l: Izel IMk4 I • it � y f?� %'� / ' "+� a•����1 r f� r�, The Covid-19 Pandemic highlighted two crucial business challenges: A fundamental shift in consumer demand towards an online shopping. A significant portion of new and established businesses lacked the necessary skills to swiftly and effectively adapt to the evolving digital landscape. Lj A I N 100 0 --1 r� 2019 2020 2021 Pandemic boost Source: Digital Commerce 360 2022 • r COIV11 HKE s'opify uz4agento Wix n Member MMarketplace,... • n Member MMarketplace,... In-depth classes and webinars covering every aspect of starting, growing, and running a business, for aspiring and existing business owners. • %' Our program equips paricipants with the essential tools and resources necessary to „ establish a strong online presence, guiding ° � them from the initial steps of getting their business online to advanced strategies for E reaching and attracting customers. NOY Specialized training on successful online selling, including the latest e-commerce trends and tactics. Our program ensures that participants not only understand the fundamentals but also gain actionable insights to increase sales and expand their customer base. • n Member MMarketplace Alk • OHO Home Shop by Category Browse Businesses About the Marketplace Become a Seller Customer Support .- �-- Support Local: Shop Small Businesses in _ x Federal Way from the Comfor of.Your Hom��z-,. Seasonal - nr ; Kv �.A Mac600k Pro • Setting up a storefront Product photography Product descriptions & SEO Fi llfillinn and -qhinninn nr6mr-q • Small business friendly L Able to sync & integrate with Shopify Businesses benefit from network effect of the entire marketplace Customers benefit from expanded local product offerings and one cart checkout Start to C Cohort Program What They'll Walk Away With: • Solid foundational knowledge of online retailing • Working knowledge of digital marketing best practices • An online storefront through a marketplace built specifically for small businesses • No -cost web hosting for up to one year • A support team to help with technical assistance • Access to a shared network of local customers • The ability to expand into new channels online • The ability to reach millions of customers and increase sales online Business Outcomes • Businesses gain transferrable skills to expand further online o Online retailing foundation ■ Shop policies ■ Product pricing, descriptions, & photography ■ SEO basics ■ Inventory management ■ Packaging and fulfillment o Online marketing • 100% of business have a free platform to begin selling online • 63% of businesses that list products through the marketplace 1 • -eased their sales. An ice cream and candy shop in Iowa set up an online gift card through the marketplace quickly, selling hundreds in less than a month that brought in over $10,000. A restaurant in Ohio set up a product on the marketplace to give their customers a way to buy their in -stare gift cards online, bringing in $29,075 for the business. An in -home bakery in e1 has received orders from across the State of Iowa after joining the Shop Iowa marketplace, previously only servicing local customers. A men's clothing store joined their community marketplace and after discovering how easy it was to use, abandoned their current effort to build a full e-commerce site and uses the marketplace to sell their products instead. A local gym in New York sold $73,082 worth of gym memberships through their local marketplace without needing to set up their own e-commerce site. Community Res AM E R I CA 3 We were able to get Shop Made in Nevada up and running quickly and ;ost effectively. Now, our Nevada small businesses have access to a credible business venue to sell products and services online and we've been able to increase our members by over 300%. Winnie Dowling Deputy Director Nevada Small Business Development Center City of Santa Fe Tourism City of Santa Fe Tourism has been able to help keep tourism dollars for their small businesses coming in from through its marketplace from tourists after they go home. Over 80% of the orders are from out of state customers. Matching Program in Corning, NY Infuses $170,000 into Local Economy in Two Months The Corning, New York marketplace went live with the Corning Area Chamber of Commerce and Corning's Gaffer District in 2021. Through a local sponsor, a match program for each transaction up to $5,000 per business was put in place to help boost holiday local shopping and support small businesses. Business Flock to California Shop tit p Small's Online Cohort Program Over 1500 businesses have applied to be apart of the cohort programs for California Shop Small. Approximately 50% of those that participate in the program graduate from the 6-week course to have an online retail shop with products added. YEAR ONE- 2024 $45,000- To propel the Shop Federal Way marketplace program in its inaugural year, the city will provide preliminary funding. YEAR TWO- 2025 $229500- A deliberate transition to approximately 50% funding by the city, supplemented by a tiered plan for small businesses, fostering their financial contribution to the marketplace's success YEAR THREE- 2026 $11,250- a reduction to 25% investment in the program ensures it remains a Federal Way initiative amidst evolving city priorities. Business fees and additional sponsorship revenue can supple the cost and amplify the impact of Shop Federal Way.